Final approval on futures bill delayed again<\/p>\n
JAKARTA (JP): Final approval of the bill on futures commodity
\ntrading was canceled for the second time yesterday, as members of
\nthe House of Representatives failed to agree with the government
\non several important issues.<\/p>\n
The government-sponsored bill, submitted to the House in
\nDecember, was scheduled to be approved on April 4 but was
\npostponed. It was delayed again yesterday.<\/p>\n
The delay means the bill will not get the House's approval
\nuntil the next debate session which will be in early July to
\nSeptember this year.<\/p>\n
The current meeting sessions will end on April 15.<\/p>\n
Sources said yesterday the government and some House members
\nwere still divided over the type of commodities to be traded on
\nthe futures exchange, the role of the national Commodity Exchange
\nAgency and the validity of the decree issued by Minister of
\nIndustry and Trade for the establishment of a special team to
\nprepare the exchange's operations.<\/p>\n
Legislators complained that the ministerial decree disregarded
\nthe House's role because it was issued before the bill was
\napproved by legislators and before it was ratified by the
\nPresident.<\/p>\n
The bill which will pave the way for the establishment of
\nIndonesia's first futures commodity exchange will provide a legal
\nfoundation not only in trading activities but also to exchange
\nmembership and trading supervision.<\/p>\n
Under the proposed bill, the futures bourse would be run by
\nprivate companies while the government through a Commodity
\nSupervisory Board, would act only as supervisor.<\/p>\n
Many analysts doubt the exchange can operate efficiently or
\nwhether it is worth joining, considering that overseas exchanges
\ncan be accessed.<\/p>\n
Some fear the market will be dominated by big groups such as
\nthe Federation of Edible Oil and Fats Association (FAMNI) and the
\nAssociation of Indonesian Coffee Exporters (AEKI) whose
\ncommodities are likely to be the first to be traded on the
\nfutures market.<\/p>\n
The two associations have been actively preparing the
\nestablishment of the futures commodity.<\/p>\n
FAMNI Vice Chairman Tarmidzi Rangkuti said FAMNI had no
\nintention of monopolizing the exchange.<\/p>\n
In fact seeking members who were willing to be listed as the
\nexchange's founders was not easy, he said.<\/p>\n
\"Many of FAMNI's members have not decided yet whether they
\nwant to join (the futures exchange) or not. They say it's safer
\nto wait and see,\" he said.<\/p>\n
\"If FAMNI and AEKI are considered to have a close relationship
\nwith the national Commodity Exchange Agency, it is because we
\nwere the first to respond to the government's proposal to
\nestablish a futures commodity exchange,\" Tarmidzi said.<\/p>\n
Four Indonesian commodities have the potential to be traded on
\nthe exchange: coffee, crude palm oil, rubber and cacao.<\/p>\n
A feasibility study last year concluded that a futures trading
\nexchange would cost between US$5 million and $10 million to set
\nup and $1.5 million to run each year.<\/p>\n
The exchange could reach break-even point in two to four years
\nof operation with fees for each transaction set between $2 and
\n$5. (pwn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/final-approval-on-futures-bill-delayed-again-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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